September 6, 2010

Germany sees 12% decrease in grain production

Following adverse weather, the country's 2010 grain production is likely to fall by 12% on-year to around 43.8 million tonnes, according to Germany's agriculture ministry.

German grain has suffered from an early summer heat wave followed by heavy harvest-time rain, it said. The wheat crop of all types was likely to fall 5% on-year to 23.92 million tonnes. This includes the key winter wheat crop, used for bread-making, which is expected to drop 5.3% on-year to 23.58 million tonnes.

German wheat prices rose on Monday (Aug 30) to their highest level in 28 months on fears the harvest size and quality had been heavily damaged. Germany's woes have added to a series of global wheat production problems.

World wheat prices surged to two-year highs in early August as drought devastated Russia's harvest and the country announced a sudden grain export ban. Heavy rains have also hit wheat in Canada and Pakistan.

German' corn crop is likely to fall 19.5% to 3.64 million tonnes, and the rye harvest will fall 34.3% to 2.84 million tonnes, it said.

However, the farm ministry said it believed Germany would still be self-supporting in wheat despite the forecast 5.3% drop in the winter crop.

The rapeseed crop is likely to fall 9.3% to 5.7 million tonnes, the report said.

Rapeseed has also suffered from the extreme weather this summer, but last year's 6.28 million-tonne crop was a record and this year's harvest will be above average, it said.

About 80% of Germany's rapeseed crop is expected to be for non-food use, it said.